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Our Contact Info:

7740 N. 16th St.
Suite 380
Phoenix, AZ 85020

Phone: (480) 563-9808
Fax: (480) 563-3724



 

Defined Benefit Pension Plans

 
Percentage Limits Annual Dollar Limits Pros Cons
Depends on Age, Length of Service, and Wages up to $400,000 Largest Contributions Allowable, Most Investment Choices Can be Inflexible, Requires Certification of Actuary, Requires Plan Document and Annual Filings with DOL
Age Wages Years of Service Max Contribution\Yr.
65 $255,000 + 5 + $305,000
55 $255,000 + 5 + $230,200
45 $255,000 + 5 + $145,200
35 $255,000 + 5 + $85,000
  Comment: These Plans work well for someone with historically high wages, and who wants amass the most, in the shortest time.
   
  401(k) Plan
 
Percentage Limits Annual Dollar Limits Pros Cons
$15,000 ($20,000 if 50+) in Deferrals, plus 25% of Eligible Wages $51,000 (or $56,500) Flexible, Larger Contributions for Lower Wage Earners, Most Investment Choices Requires Plan Document and Annual Filings with DOL, Payroll Taxes on Deferrals
Age Wages Years of Service Max Contribution\Yr.
50+
$255,000
N / A $56,500
50+ $100,000 N / A $48,000
50+ $50,000 N / A $35,500
up to 50 $255,000 N / A $51,000
up to 50 $100,000 N / A $42,500
up to 50 $50,000 N / A $30,000
  Comment: These Plans work well for someone with historically low wages, and who wants to amass the most, in the shortest time, plus total funding flexibility each year.
   
  SEP IRA
 
Percentage Limits Annual Dollar Limits Pros Cons
25% of Eligible Wages $51,000 Inexpensive, Flexible Narrow Investment Choices, No Vesting Schedule
Age Wages Years of Service Max Contribution\Yr.
N / A
$255,000
N / A

$51,000

N / A $100,000 N / A

$25,000

N / A $50,000 N / A

$12,500

  Comment: These Plans work well for someone who wants total funding flexibility each year.
   
  SIMPLE IRA
 
Percentage Limits Annual Dollar Limits Pros Cons
$9,000 ($10,500 if 50+) in Deferrals, plus 3% of Eligible Wages $19,650 (or $22,150) Inexpensive, Flexible Narrow Investment Choices, No Vesting Schedule, Payroll Taxes on Deferrals
Age Wages Years of Service Max Contribution\Yr.
50 +
$50,000
N / A

$16,000

50 + $25,000 N / A

$15,250

up to 50 $50,000 N / A

$13,500

up to 50 $25,000 N / A

$12,750

  Comment: These Plans work well for someone with low wages, who wants total funding flexibility each year.